Mortgage rates jumped higher this week, getting even closer to 7% and crushing homebuyer activity, which hit a 28-year low.
The average rate on the 30-year fixed mortgage increased to 6.65% from 6.50% the week prior, according to Freddie Mac. Rates have climbed over a half-point in February, reversing declines since mid-November.
The spike in rates is another blow to would-be buyers, who are also facing still-high home prices and a shortage of affordable homes for sale. Sellers also appear to be pulling their listings, rather than cutting prices further to spur interest.
“I think the biggest concern is buying into a market that would continue to go down,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces, recently told Yahoo Finance. “In my 18-year career, I have never seen rate moves like we are seeing now.”
Click here to read the full report from Gabriella Cruz-Martinez at Yahoo Finance.
